Glo-Bus Strategy Research Paper


3. The number of special promotions each quarter.

Special manufacturer promotions are of interestto retailers stocking the company’s models because they call attention to the brand, spur consumer interest and store traffic, and generally result in higher unit sales.

4. The length of the special quarterly promotions (in weeks).

Longer promotion periods aregenerally welcome because promotions lasting only one or two days do not give many buyers a bigenough window to squeeze in a shopping trip and make a purchase.

5. The size of the discounts off the regular wholesale price during these promotions.

The size of thediscounts off regular price is a key factor in determining the effectiveness of any special promotion.Special promotions involving sale prices of 15 or 20% off the regular price result in bigger gains insales volume than promotions offering only 5 or 10% discounts. Retailers that are offered, say, a 15%discount off the regular wholesale price during special manufacturer’s promotions can be counted onto pass the savings along to consumers in the form of corresponding sale prices of 15% off theregular retail price. Promotional discounts off regular price spur purchases from price-consciousshoppers.

6. Advertising expenditures.

Media advertising is used to inform the public of newly introducedmodels and styling and to tout the company’s brand. Even though retail dealers act as an importantinformation source for customers and actively push the brands they carry, advertising on the part of camera makers strengthens brand awareness, helps pull buyers into retail stores carrying theadvertiser’s brand, and informs people about the features and prices of their latest digital cameramodels. The competitive impact of advertising depends on the size of your company’s current-year advertising budget. A company's market aggressiveness in promoting its lineup of models and stylesin a given geographic area is judged stronger when its annual advertising expenditures


theregion average and is judged weaker the further its ad budget is


what rival companies arespending on average.

Other competitive factors being equal, companies with above-average current-year advertising expenditures will outsell companies with below-average current advertising expenditures.7. Product selection, as measured by the number of models in each line of cameras—entry-level and multi-featured.

Companies with an above-average number of models enhance their company’scompetitiveness in the marketplace by giving camera buyers wider product selection and thus moreopportunity to find a model well suited to their preferences. Companies with comparatively fewmodels risk losing sales and market share to competitors offering greater selection, unless they offsettheir narrower selection with other appealing competitive attributes (a lower price, a higher P/Qrating, more advertising, longer special promotions, etc.).

8. The numbers of retailers carrying the company’s brand.

A company’s sales and market share ina geographic market are heavily influenced by the number and type of retailers it can convince tostock its brand and display its models. In general, having more retailers selling the company’s brandis better than having fewer retailers because of the added display exposure and the addedconvenience to camera buyers of being able to buy a given brand at more locations.

The number of retailers in a region desirous of carrying a company’s brand in an upcoming year is based on four  factors:

(1) the brand’s prior-year shares of both entry-level and multi-featured camera sales in thatregion, (2) the maker’s P/Q ratings for both entry-level cameras and multi-featured cameras, (3) amanufacturer’s


spending on advertising relative to rivals in the geographic region (which

Glo-Bus Team Strategic Analysis Ratings: (0)|Views: 12,268|Likes: 45 Published by Myra This is a strategic analysis which was developed by my team. See more Analysis 2 The Glo-Bus application was a very challenging and intriguing exercise.Starting out in the simulation, our team was positioned well with a goodstrategy and several strengths in our first couple of years. Despite thisstrong start, we struggled to adapt to the changing market conditions andadapting our strategy accordingly. Ultimately, we gained several newinsights that should help us each in our future strategy formation andexecution efforts.StrategyAs a co-management team we quickly formulated our plan of attack.We decided to plan weekly phone conference with all the managers of Distinguished Images. We felt that this would be the most effectiveopportunity for our management team to talk through our strategies andcollaborate on a plan of attack. By doing this, we were able to voice ourintentions for the company and give our input as individuals to reach towardthe vision of the company as the weeks progressed. We also adopted ourcompany vision statement:“Distinguished Imaging strives to be the global market leader inreliable and technologically advanced digital cameras. We are focusedon meeting our customer’s needs for advanced technology productsand seek to be the 1st choice in digital imaging technology.” By having our vision statement early on, we were working to “be unified intoa coordinated, cohesive Analysis 3 From a strategic perspective, Distinguished Images initially sought tooffer quality products at a value price point. Our goal was to use the “best-cost provider” strategy where we would provide good-to-excellent productqualities at a low price point (Thompson, Strickland and Gamble, 2008).Our goal was offer a quality entry-level camera at a low price point and ahigher quality multi feature camera at a value price point. Later we wouldadjust this strategy to be a combination of “low-cost” and a “focused marketniche differentiation” strategy.StrengthsDistinguished Images then began to collaborate in order to form ourinitial action plan. We saw the quickest way to achieve our best-costprovider strategy this goal was to invest in a high quality workforce andfocus on employee productivity. We sought to

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